As the oldest of the Seven Wonders of the Ancient World, the Great Pyramids of Giza in Egypt, is a huge tourist attraction. The Egyptian Government decides to grant one person, called Rajmund, exclusive access to the pyramids so he can conduct tours. Each tour costs him $108 to conduct (ie: his marginal cost is constant at $108/tour). Below is a table of potential prices he could charge and the corresponding quantities. Price ($/tour) 200 180 162 144 130 122 Quantity (tours) 2 4 6 9 12 14 Although Rajmund can exert monopoly power, he decides he will set a price of $130 per tour (without consulting any economic concepts). Answer the following questions: a. What is Rajmund's marginal revenue when the price is $130 per tour? Answer to the nearest whole number (with no decimal places). $ /tour. b. At $130 per tour, should Rajmund decrease or increase the number of tours to maximise profit? . Type D for Decrease or I for Increase. c. What price per tour should Rajmund be charging in order to maximise profit? Answer to the nearest number (with no decimal places). $ /tour.

As the oldest of the Seven Wonders of the Ancient World, the Great Pyramids of Giza in Egypt, is a huge tourist attraction. The Egyptian Government decides to grant one person, called Rajmund, exclusive access to the pyramids so he can conduct tours. Each tour costs him $108 to conduct (ie: his marginal cost is constant at $108/tour). Below is a table of potential prices he could charge and the corresponding quantities. Price ($/tour) 200 180 162 144 130 122 Quantity (tours) 2 4 6 9 12 14 Although Rajmund can exert monopoly power, he decides he will set a price of $130 per tour (without consulting any economic concepts). Answer the following questions: a. What is Rajmund's marginal revenue when the price is $130 per tour? Answer to the nearest whole number (with no decimal places). $ /tour. b. At $130 per tour, should Rajmund decrease or increase the number of tours to maximise profit? . Type D for Decrease or I for Increase. c. What price per tour should Rajmund be charging in order to maximise profit? Answer to the nearest number (with no decimal places). $ /tour.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 1.3CE

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Explain all option compulsary......you will not explain all option then I will give you down upvote...
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